Proposal To Lower City's Tax Rate Fails

WILLIAMSBURG — An attempt to lower the city's real estate tax rate for the second half of the 1999-2000 budget year failed Thursday.

City Councilman Gil Granger wanted to lower the tax rate to 25 cents from 27 cents per $100 of assessed real estate value for Jan. 1 to June 30.

Taxpayers were levied 27 cents per $100 of assessed real estate value for July 1 to Dec. 31, 1999. The total annual tax rate - from July 1, 1999 to June 30, 2000 - is 54 cents per $100 of assessed real estate value.

Granger's motion to temporarily change the tax rate for this half of the budget cycle lost through a tied 2-2 vote. Councilman George Genakos was absent from the meeting due to illness.

Granger said taxpayers should receive the break because the city has a $15 million reserve fund and the amount collected in taxes exceeded city projections.

But Mayor Jeanne Zeidler argued that the average savings to taxpayers would be only $31. Currently, a homeowner with a house assessed at $155,000, pays $418.50 in real estate taxes for each half of the year. Granger's proposal would have lowered that number to $387.50.

Zeidler also said that while the city has a $15 million reserve fund, it also has $10 million in debt. She said it would be contradictory for the council to temporarily lower the real estate tax rate when it recently raised the room and meal taxes to 5 percent from 4 percent.

"We should not fund the city on the backs of the hospitality industry,'' she said.

Also in City Council action:

* Members deferred approval of a committee to study the possibility of a farmers market. The city's Planning Commission had asked the city to approve creating a committee to research the possibility of having a farmers market that would be located on the top level of the parking garage on Boundary Street. The market would sell fresh produce and be open on Saturday mornings, according to the Planning Commission proposal.

The council members had doubts that there was interest from farmers and didn't like the proposed location for the market. They deferred action until residents and farmers show interest in supporting the market.

* Members discussed the possibility of raising their $3,000 annual council salaries. The council's salaries haven't been adjusted since 1984.

In 1997, it was proposed the council increase salaries to $4,200 for council members and $4,800 for the mayor, but the council didn't act on the proposal.

The council agreed that after the May elections, it would discuss raising the salaries.

A salary increase must be approved at least four months before a council election. If approved, the earliest a salary increase can be given to Williamsburg City Council members is July 1, 2002. The highest amount of pay a council member can earn per year is $11,500.

Kara Vick can be reached at 229-3784 or by e-mail at kvick@dailypress.com